Ethereum Transforming Next Month | The Dencun Upgrade
The Blockchain Sector @ 2024-02-23
The core devs at Ethereum are in the final stages and have scheduled the Dencun upgrade to be rolled out around the 13th March 2024.
Dencun includes some major upgrades including:
Scalability Introduction of Proto-Danksharding to enhance transaction speed and volume, benefiting Layer 2 solutions on the Ethereum blockchain. The integration of temporary data storage "blobs" will significantly reduce gas costs, making transactions cheaper for Layer 2’s.
Security Implementation of EIP-6780 will finally depreciate the god awful selfdestruct function which has caused a number of exploits in smart contracts.
Cross-Chain Improvements: Introduction of EIP-4788 to facilitate easier, more secure cross-blockchain interactions, enhancing interoperability with Layer 2 solutions.
The biggest beneficiaries will perhaps be the Layer 2 networks such as Arbitrum and Optimism which will see their operating costs reduced significantly due to the reduced fees for blob data storage.
Some token ticker symbols to keep an eye on if this catches a narrative:
$MATIC
$ARB
$OP
$MANTA
$STRK
Dencun pushes Ethereum one step closer to the end goal of the existing mainnet becoming a chain of chains and user transactions moving to L2’s. I standby my thesis that there will eventually be a network of “enshrined rollups” which will become the Ethereum mainnet as we know it.
This could be 5-10 years out and the privately run 3rd party L2’s we see today will prove the technology works at scale before the Ethereum foundation commits to an official enshrined L2 layer.
The world computer is scaling up slowly but surely.
BTC/USD leveling off at $52k resistance after a big run up. This will give moving averages a chance to catch up. Significant support levels and trends lines which will provide a support on any dips.
ETH/BTC also at an interesting resistance level. If it can break above 0.06 then market structure will have shifted and the world will be a better place. This is timely if the Dencun upgrade can pull some attention and shift the narrative back to the Ethereum ecosystem.
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